
Then Demand Outpaces Production…
All dairy processing, from cheese manufacture to processing milk into cartons, runs very close to capacity. It is the predictability of production and supply chain operation that allows for processing consistency, although each product responds to supply shocks differently. Fluid milk has a consistent supply and can therefore absorb shocks more easily, allowing for very little disruption in what we see in the dairy aisle; cottage cheese supplies in batches, typically every two to three weeks at a time, meaning supply shortages can be obvious to consumers depending on the severity.
In October 2025, labour disputes at an Agropur processing facility in Amqui, Québec resulted in cottage cheese shortages across eastern Canada as production stopped. While processing eventually continued at that facility, when Canadians faced empty cottage cheese shelves beginning April 2026, the cause came from the demand side. The biweekly method of supply could not keep up with how much consumers sought cottage cheese to meet protein goals. These supply bottlenecks are not a unique development for 2026, but improving the situation is not as simple as “increase cottage cheese production.” High protein processed dairy tends to be yield inefficient, meaning more fluid milk is used to make the product than the weight equivalent of the final good; Greek yoghurt, to clarify, requires six times the amount of milk as traditional yoghurt in order to achieve its protein content.
Primarily, the shortages seen across Canada have not been widespread. No brand has been singled out, either, implying somewhat of a willingness for consumers to substitute between cottage cheese sources or, potentially, between high protein dairy sources. However, the long-term threats of production constraints could start affecting an already consolidated dairy manufacturing environment, as is the fear with whey protein (which is facing similar demand-supply outpacing), with larger cottage cheese contracts becoming preferred business and smaller processors eventually forced to drop production lines. Therefore, if domestic processing becomes insufficient to meet demand, what other options exist to increase (dairy) protein availability?